ABSTRACT
The potential for reconstructing a specific direction of complementary transformation between the variables, which is to be indicated by the sign of the coefficients, are to be studied by the following set of relations:
(-) (-) (-) (-) lnP = 4.638 + 0.050 ln ZIS +0.010 ln BMT + 0.190 Ln G – 0.829 lnθ (13.1)
(+) (+) (+) (+) ln ZIS = – 14.732 + 2.498 lnP – 0.024 ln BMT – 0.572 lnG +4.735 lnθ (13.2)
(+) (+) (+) (+) lnBMT = -4.692 + 2.808 lnP – 0.126 ln ZIS – 0.523 ln G + 0.785 lnθ (13.3)
(-) (+) (+) (+) lnG = -12.166 +2.446 lnP-0.146 ln ZIS – 0.25 ln BMT + 3.007 lnθ (13.4)
(-) (+) (+) (+) lnθ = 4.045 − 0.768 lnP +0.087 lnZIS + 0.003 lnBMT +0.217 lnG (13.5)
The comments on the underlying weaknesses of Islamic banks globally follow from the critical observation on the World Islamic Banking Competitiveness Report 2013 (Ernst & Young, 2012). A competitiveness report without the moral and social implications of the parameters of competitiveness is unacceptable for the social actualization
of an Islamic banking and financial system. This competitiveness report highlights the following criteria in its glossy reflection of Islamic banking performance. First, it notes the necessity of regulatory performance to meet the conditionality of Basel II on capital adequacy requirement. The Islamic banking industry translates this conditionality as involving compliance risk, capital optimization, integrated balance sheet management and liquidity. Yet if evaluated in the context of small and large banks and businesses in the Islamic global portfolio, this conditionality proves to be adverse for smaller businesses.
